Student loans have not been cut, insists Reagan (Continued from Page 1) American public today about student aid programs," he said., "This is an /outright cut." Reagan said that under his program, 44 percent of the nation's un- dergraduates "would be eligible for a veritable laundry list of help," in- cluding up to $1,600 in grants, $2,500 in guaranteed loans, and work study sup- port ayeraging $700 annually. But Reagan did not mention that un- der his proposals: * Many students from families with more than $30,000 annual income for the first time would have to demonstrate need to become eligible for aid. " The fee charged when a loan is first granted would double from 5 percent to 10 percent. " The maximum $1,600 grant available to unidergraduates represents a $200 reduction from current figures. " As many as 700,000 graduate students would be barred from the guaranteed student loan program: REP. PAUL SIMON (D-Ill.), chair- man of the House post-education sub- committee, was particularly critical of the president's remarks. "The President's statement is amazingly confused," Simon said. "These are the facts. Under the proposals, more than 2 million college students will be denied loans and/or grants in the upcoming school year, not counting those who are losing Social Security help," he said. "Contrary to what the president said, graduate students would find their loan program devastated by the administration's proposal." As an alternative to the 9 percent loans, on which students pay no interest until after graduation, Reagan wants graduate students to borrow under an auxiliary loan program that would charge them 14 percent interest from the start. WHILE A graduate student's total indebtedness could increase from the curent $25,000 to $40,000, the change in the program could mean monthly in- terest payments alone of $466. Democratic National Chairman Charles Manatt said the numbers Reagan recited bear little relation to "troubling impact of his policies on our educational system." "If the administration curtails the authority for guaranteed student loans, even the $300 million mentioned in his Barbados address, this will trigger reduced loans three and four times that amount because the banks simply won't lend the money as they did with greater guarantee authority," Manatt said. "What we really have is $1 billion fewer loans. In his speech, the second of a series of live radio addresses, Reagan also said his Caribbean Basin initiative, "a plan for trade, aid and private investment" to build up the economies of Central American and Caribbean nations "is sound and in our best interest as well as theirs." IN BRIEF Compi led from Associated Press and United Press international reports U.S. accused of murder plot SAN SALVADOR, El Salvador- Leftist rebels asserted yesterday that the CIA is planning to assassinate ultra-right leader Roberto D'Aubuisson to keep his Nationalist Republican Alliance from taking power in El Salvador. "The U.S. State Department is trying to keep Maj. Roberto D'Aubuisson from power and the CIA has been charged with physically eliminating him." Radio Venceremos said the Reagan administration wants to ,keel D'Aubuisson's Nationalist Republican Alliance, which has been linked with death squads terrorizing Salvadorans, from participating in a new gover nment. "Reagan is interested in keeping Christian Democratic regimes in Central. American," Venceremos said. The Christian Democrats won 24 seats in the assembly. Visiting U.S. congressmen told rightist leaders this week that they risked , cut-off of massive U.S. military and economic aid if they excluded the moderate Christian Democrats from power. Americans lax in filing taxes WASHINGTON- The midnight Thursday deadline for filing federal in- come tax forms is approaching, but the Internal Revenue Service says m ore than a third of the returns still have not been filed. For those who file after the deadline, the interest penalty for late payment has been raised this year to 20 percent from the 12 percent of last year. The Internal Revenue Service is expecting about 96 million returns this year, up slightly from 1981. At last count, as of April 2, the government had received 57.5 million returns, down about 1.7 percent from the same time a year earlier. Officials don't make much of that difference, saying millions of tax- payers-especially those who owe additional money-always put off filing until the last day or two. "You always get your people who file early to get their refunds and the others who owe money wait until the end," said Tony Bombardiere, an IRS public information officer. Nicaragua may talk with U.S. MANAGUA, Nicaragua- Although Nicaragua has made no "normal" response to a new U.S. plan to normalize relations, there are indications that the Sandinistas will be willing to negotiate if Mexico plays a key role in the: talks. "The important thing is to seek peace and stability, even if it means direct: talks;" junta member Sergio Ramirez Mercadoat said last week before the U.S. plan was revealed this week. "But we want to do everything within the Mexican framework'for peace," he added. The eight-point plan was presented in Managua by U.S. Ambassador An-: thony Quainton as part of a month-long U.S. effort to get a dialogue going between the two estranged governments. According to sources here, the United States wants direct talks with the ruling Sandinista government. But Ramirez, one of three junta members, made it clear Nicaragua wants to use Mexico as a "communicator." Mexican President Jose Lopez Portillo has been a staunch friend of the lef- tist government. He earlier proposed a non-aggression pact between the United States and Nicaragua, and offered to oversee negotiations. Turkey's ex-leader arrested ANKARA, Turkey- Former Prime Minister Bulent Ecevit, a persistent critic of the military government, was arrested by a force of more than 100 soldiers who converged on his home early yesterday. It was the second time this year that Ecevit, who has been waging a heated verbal battle with Turkish leader Gen. Kenan Evren, had been arrested for violating a government ban on political activity. Ecevit, chairman of the disbanded Republican People's Party will be of- ficially charged tomorrow with defying the military ban on political activity and damaging Turkey's interests in foreign countries, reliable sources said. Ecevit's latest arrest was triggered by a speech he made on Norwegian television last week challenging a speech Evren made last Saturday, the sources said. Levin blasts Reaganomics in ailing Detroit yesterday what a 17 percent unemployment rate is doing to the spirit of the people of my state," he said. LEVIN SAID the economy needs "a break from supply-side economics which have supplied us with more than 5,000 bankruptcies in just the first three months of this year, which have sup- plied us with'a crisis in agricultural in- come, which has supplied us with 17 percent interest rates, and which have supplied us with a threat to the stability of our savings and loan institutions." Levin also criticized Reagan's Latin American policy for 'supporting gover- nments which reject the policies and principles that make our nation free." Hailg races to preserve peace in the Falklands (Continued from Page 1) the British colony it invaded last Friday. But the mood of the crowd, estimated by: military authorities to number at least 200,000, was genuine and eager for war. "Death to the swine, Margaret That- cher," they thundered. "The queen of England is stupid." THE ARGENTINE president told the crowd Argentina "extends its hand, in peace, to the adversary. Put let the world be sure that the Argentine people is firm in its will. If the British want to come, then let them come and we will do battle.. . Britain has announced a blockade of the Falklands as of 11 p.m. today war- ning that any Argentine ship found within 200 miles of the islands after that hour will be fired upon and sunk. A 40-ship British war fleet, dispat- ched six days ago, was still a week away from the Falklands, 450 miles off the Argentine coast. But two and possibly four British nuclear-powered submarines were reported already in the icy south Atlantic enforce the blockade. CAUGHT IN the middle of the dispute over the islands that Britain has ruled and Argentina has claimed for nerly 150 years, were the 1,800-English speaking residents of the Falklands. - A message smuggled out by the islanders and released by the Foreign Office in London said 500 wanted to be evacuated before the fighting starts but that the rest had chosen to stay, and side with Britain. In London a controversy over nuclearr depth charges and the potential of civilian casualites erupted. British press reports said helicopters aboard the armada's lead carrier In- vincible were armed with anti-sub- marine nuclear depth charges, a new type of weapon about which little was known. But the Daily Mirror said "the Cabinet has no intention to allow com- L __ 1 e titga Bt Vol. XCII, No. 152 Sunday, April 11, 1982 The Michigan Daily is edited and managed by students at The Univer- sity of Michigan. Published daily Tuesday through Sunday mornings during the University year at 420 Maynard Street, Ann Arbor, Michigan, 49109..Sub- scription rates: $12 September through April (2 semesters); $13 by mail out- side Ann Arbor. Summer session published Tuesday through Saturday mor- nings. Subscription rates: $6.50 in Ann Arbor; $7 by mail outside Apn Arbor. Second class postage paid at Ann Arbor, Michigan. POSTMASTER: Send address changes to THE MICHIGAN DAILY, 420 Maynard Street, Ann Ar- bor, MI 48109. The Michigan Daily is a member of the Associated Press and subscribes to United Press International, Pacific News Service, Los Angeles Times Syndicate and Field Newspapers Syndicate News room (313) 764.0552, 76-DAILY. Sports desk, 764-0562: Circulation, 764-0558: Classified Advertising, 764.0557: Display*advertising. 764-0554; Billing. 764-0550. S I Editor-in-Chief .....r................DAVID MEYER Managing Editor ................. 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